Romania: Searches in EPPO investigation into suspected €7.8 million fraud involving EU-funded social enterprises

(Luxembourg, 30 October 2026) – The European Public Prosecutor’s Office (EPPO) in Cluj-Napoca (Romania) has carried out nine searches in Bucharest yesterday, in an investigation into suspected fraud involving four EU-funded projects intended to support social enterprises in disadvantaged areas. The suspected scheme is estimated to have caused €7 832 000 (RON 41.510.878,25) in damage to the EU budget.

The searches took place at the homes of suspects and at the premises of companies. Six suspects were brought before the judicial authorities to be formally informed of the charges, with judicial control measures to be imposed in certain cases. The searches were carried out by police officers from the EPPO Support Structure in Romania – Cluj-Napoca, the Economic Crimes Investigation Directorate and the Special Operations Directorate of the Romanian General Police Inspectorate, as well as the Romanian Gendarmerie.

The four projects were implemented between March 2019 and November 2022 under Romania’s 2014–2020 Human Capital programme (POCU), funded by the European Social Fund (ESF). They were intended to help establish and develop social enterprises in disadvantaged areas, including by providing training and funding for selected business plans.

According to the investigation, the suspects controlled, directly or through close relatives, several companies, associations and foundations involved in the projects. They are believed to have used these entities to direct funding towards business plans submitted by people within their circle of influence or in whose businesses they had a direct interest. The selection process was allegedly staged to make it appear that the business plans had been assessed fairly and transparently, although the evaluation was in fact carried out by people other than those named in the supporting documents.

The suspects are also believed to have claimed funding for training courses that had not taken place, using documents that falsely described the organisation and delivery of the courses. They allegedly manipulated purchases made under the projects, including those involving Social Economic Structures, by using intermediaries and companies they controlled to obtain money from the grants.

Precautionary measures have also been imposed on the suspects’ real estate assets, valued at approximately €1 074 000.

All persons concerned are presumed innocent until proven guilty in the competent Romanian courts of law.

The EPPO is the independent public prosecution office of the European Union. It is responsible for investigating, prosecuting and bringing to judgment crimes against the financial interests of the EU.